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TEX-MED ALLIANCES ENI CBCMED Programme. the PROJECT BASE TEX-MED ALLIANCES ENI CBCMED Programme. THE PROJECT BASE LINE Output 3.1 Francesco Pellizzari, Technical Assistance Manager and Project Partners. March, 2020. DISCLAIMER This document has been produced with the financial assistance of the European Union under the ENI CBC Mediterranean Sea Basin Programme. The contents of this document are the sole responsibility of Francesco Pellizzari, Project Technical Assistance Manager, and can under no circumstances be regarded as reflecting the position of the European Union or the Programme management structures. 2 FORWARD. This report refers to project output 3.1: Project Base Line of WP3. It outlines the Base Line (including SWOT) of each of the regions being part of the project area as well as for the whole T/C industry of the area. The Base Line represents the starting point of the Project and it provides its initial benchmark. The analysis for each region/country were conducted by the local Project Partners following the methodology presented at the Project Kick off Meeting held in Barcelona (19-20 February 2020). Project Partners were able to implement the local assessments in a limited timeframe by deploying exceptional resources in the activity in order to catch up with the initial project plan. This effort had also the outcome to avoid the slow-down of the Project/Programme activities due to the Covid-19 infection outbreak. The Report consists of the following Parts: Part 1. EXECUTIVE SUMMARY Part 2. BASE LINES OF EACH REGION/COUNTRY (consisting of the following inputs): 1. Outline of the T/C sector in the region a) Size • Geographical perimeter of the sector • Number of enterprises in the T/C Industry • Total turnover of T/C Industry • Total local employment direct • Estimation of Total indirect employment • Exports b) Specialization • Core activity of the sector (characterization) • Typical or prevailing products • Other relevant products • Other relevant technologies/processes 2. History and Evolution (of the T/C sector in the Region/Country) • Driving forces of the past • Subsequent evolution and changes • Current situation 3 3. Swot Analysis 4. Characterization (of the T/C in each Region/Country) • Distinctive features • Critical factors and Key Issues • What the Region/Country Needs • What the Region/Country Offers 5. Perspectives • On-going developments • Emerging needs and forces 6. Key topics for the TEX-MED ALLIANCES project • Internationalization • Innovation • Circular Economy 7. Key topics for the ENICBCMED Programme • International Alliances Part 3. CONCLUSION. 4 PART 1. EXECUTIVE SUMMARY The T/C industry is a very significant sector in the Project area (i.e.: Catalunia, Toscana, Central Macedonia, Ben Arous, Mahdia, Monastir, Sousse, Tunis, Alexandria, Amman, Palestine) or in the regions in which the Project Partners operate. Here below some significant aggregate data (2018): • SMEs: 16.000 units (apx) • Turnover: 18.000 million Euros (apx) • Direct Employment: 230.000 units (apx) • Exports: 11.000 million Euros. Actually, these data are restricted to the specific T/C value chain (fibre, yarn, fabric, finishing and final product), therefore the multiplier economic impact of the sector is much higher just considering also adjacent sectors such as: trade and marketing (retailers, wholesalers, distributors, importers, exporters, agents, advertising agencies, specialized exhibitions and fairs, etc); logistics: shipping agencies, transport, etc.; suppliers of machinery, technology, spare parts, raw materials, utilities; suppliers of professional services: technicians, consultants, designers, etc. In all regions, the T/C sector has been developing since long (in same regions since many centuries) therefore, they are well rooted in the local society and each of them have specific features. Understanding their own characterization can facilitate the identification of initiatives that can trigger new alliances. Distinctive features of the T/C sector in each region (summary): • Catalunya (Spain): fashion for all, R&D innovation in materials, green economy • Tuscany (Italy): fashion niche specialists, sustainability, recycling/regeneration • Central Macedonia (Gr): industrial service providers, cotton innovation • Central Tunisia (Tunisia): productivity in clothing, fostering innovation in production • Technical Textile Tunisia: technical clothing such as protection, enhanced natural fibres • Alexandria Gov.te (Egypt): development of cotton, manufacturing • Amman Gov.te (Jordan): high productivity in manufacturing, USA specialists. • Palestine (whole country): business adaptation to dire situation. Beside the distinctive feature and competences that each region has, there are many other aspects that are shared or put in common since the T/C supply chain utilize the same inputs, share same machinery and operational know-how. Exchange of materials, products, technologies, skills among different regions are very common, cooperation is a habit together with competition. The following SWOT Analysis has been drafted for the whole project area and taking into consideration and combining the characterizations of each area. 5 The SWOT Analysis for each region were conducted locally by the PP on the basis of the their deep and long standing knowledge of their T/C sector, on field interviews to local experts and stakeholders as well as by processing local and national data and information (desk research). The following SWOT Analysis for the whole Project Area was drafted by Project the Technical Assistance Manager. SWOT ANALYSIS OF THE T/C INDUSTRY OF THE PROJECT AREA. STRENGHTS WEAKNESSES • Full coverage of the whole T/C value chain. • Conflicting interests among SMEs of the • Internationalization area (either vertical and horizontal) • Many and diversified excellences: • Weak production of advanced fibres o Cotton production (Egypt, Greece) • Weak R&D (compared to North EU and o Fashion Brands (Spain, Italy, locally other advanced countries) on Technical Greece and Tunisia) Textiles and materials o Skills in Modest fashion (MPC) • Average small size of enterprises o Manufacturing (clothing/knitting: • Still widespread subcontracting Jordan, Tunisia, Palestine, Egypt, (dependence to customers) Greece … niches for Spain and Italy) • Lack of a common (identical) agreement of o Finishing (Italy, Spain) each country with EU (Commercial o Technical Textiles (Spain, Tunisia barriers) o Retail (Spain and locally Greece, Tunisia) o Sustainability (Italy, Spain) o Technical Innovation (Spain, Italy) OPPORTUNITIES THREATS ➢ A global re-balancing of cost- • Instability of the Middle East competitiveness with Asian countries • The asymmetric competitive position of ➢ Economic development of nearby areas Turkey in Europe. (Africa) • The huge Economic impact of Covid-19 in ➢ A new wave of “Islamic fashion” European Mediterranean countries such as ➢ Possible cooperation and integration Italy and Spain. among Mediterranean partners (Alliances). • The global slowdown of consumers demand in the short-medium term. The SWOT Analysis identifies different areas of possible cooperation among the regions where the opportunities are significant. In these areas, alliances are likely to be possible. However, we have to consider that, at present and despite the long-standing business relationships among SMEs and BROs of the project area, the number of structured alliances complying with the definition criteria of the Programme is zero. Therefore, the way for alliances is possible but not ensured. 6 PART 2. BASE LINES OF EACH REGION/COUNTRY. 7 TEXFOR: Project Beneficiary Region/Country: Catalonia (Sabadell)/Spain 1. OUTLINE OF THE T/C SECTOR IN THE REGION a) Size 1. Geographical perimeter of the sector (area covered and population): Catalonia is one of the 17 autonomous communities in Spain. Its capital is Barcelona and the area covered is about 31.895 km2. Catalonia has a population of 7.619.494 inhabitants (Jan 2019 data) and it represents the 16,2% of the population in Spain. 2. Number of enterprises in the T/C Industry (2018): 2.526 companies (30% of the Spanish TC industry). 3. Total turnover of T/C Industry (2018): 4.425 mil € (Corresponding to 41% of the Spanish TC industry). 4. Total local employment direct T/C industry (2018): 41.165 people (31% of the Spanish TC industry). 5. Estimation of Total indirect employment (providing material inputs or services to the T/C industry such as: logistics, software, design, chemicals, packaging and hangers, consultants, technicians, etc.): 4.528,15 people (33% of the direct employment) 6. Exports: Total 4.891 mil € (30% of the Spanish TC industry – year 2018): EU: 56%. Others relevant (28%) to the Mediterranean area (Morocco, Algeria, Tunisia, Libya, Egypt, Turkey, Israel, Jordan, Lebanon and Syria) b) Specialization 1. Core activity of the sector (characterization) 60% of this sector’s activity is related to the textiles and 40% to the clothing sector. 45% of the textile products are for the clothing industry, 28% for the home textiles market and a 27% of technical textiles. Most of the companies are family SMEs, out of which 97% are micro and small companies and 3% are big companies. 2. Typical or prevailing products The textile sector is compound by companies in the following categories: - Fibre preparation - Spinning - Weaving - Finishing 8 Catalonia is strong in manufacturing fabrics and yarns. These companies have high tech processes and a great innovation in the product or the process. The companies have strength- ened its competitive factors. They
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